Market design for standardization problems with agent-based social simulation

Kotaro Ohori, Shingo Takahashi

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)

Abstract

This paper provides a computational market model with technological competitions among standards and presents simulations of various scenarios concerning standardization problems. The market model has three features: (1) economic entities such as consumers and firms are regarded as autonomous agents; (2) micro interactions among consumer agents or firm agents have essential mechanisms interpretable in real markets; and (3) consumers' preferences and firms' technologies co-affect their evolutionary behavior. In recent years, consumers have experienced various inconveniences from de facto competition based on a market mechanism. Standardization communities or committees such as the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) need to design a compatible standard or a de jure standard in a market. However, it is difficult for market designers to decide a method or timing for the standardization. Here, by introducing a novel technique used in agent-based social simulation (ABSS), which we call "scenario analysis," we aim to support such decision making. Scenario analysis provides the possible market changes that can occur following implementation of a design policy under a specific market situation and the market mechanisms that generate these market changes.

Original languageEnglish
Pages (from-to)49-77
Number of pages29
JournalJournal of Evolutionary Economics
Volume22
Issue number1
DOIs
Publication statusPublished - 2012 Jan 1

Keywords

  • Agent-based social simulation
  • Evolutionary learning
  • Market design
  • Scenario analysis
  • Standardization problems

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics

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